INCOME FROM PROPERTY: ILLUSTRATION 7

Mr. Haroon is General Manager of Moonlight Company Limited. He supplied the following data for the year ended 30th June 2012:

Basic salary per month Rs. 30,000 Bonus 30,000

Entertainment allowance p.m. Conveyance allowance p.m.
Rent income from house

Rs. 30,000

Less Repair charges Collection charges  3,000

63,000 Unadjustable advance received Remuneration for literary work

Required Calculate his tax payable. 1,200

Solution

Mr. Haroon

Tax Year: 2012

Tax Year Ended: 30th June 2012 Personal Status: Individual (Salaried Person)

Residential Status: Resident Computation of Tax Payable

Income from Salary (Section 12)

Rs. Basic salary@Rs. 15,000 p.m. Bonus  3,60,000  30,000

Salary  3,90,000  2,400

Entertainment allowance @ Rs. 200 p.m.

Rs. 4,800

Conveyance allowance @ Rs. 400 p.m. Income from Property (Section 15)

Rent income from house  96,000

Addth of unadjustable advance (2,00,000)  20,000

1.16.000  Rent chargeable to tax

(No tax is payable on rent as the amount of rent is less than Rs. 1,50,000)

Income from Other Sources (Section 39) Remuneration for literary work

Taxable income

1.200

Computation of Gross Tax

Income Tax on Rs. 3,98,400 @ 1.5%

3.98.400

5.976

Notes

1. It is not a case where rule of marginal relief may Dfa Ho be applied. 2. No tax is payable on property income as the amount of rent is less than

Rs. 1,50,000.